Coronavirus: Stocks to watch in Lockdown 2

Lockdown is back - so we've compiled our list of lockdown stocks to watch.

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Boris Johnson’s announcement on Halloween was anything but unprecedented, given the leaks to the media earlier in the week. From 5 November, England went into another month-long lockdown to end on 2 December. When this happened back in March, we saw a global stock market crash which started the COVID-19 recession.

Will this lockdown, which is creatively being called “Lockdown 2”, cause another crash?

It’s unlikely that lockdown 2 is going to have the same impact on the stock market that it had back in March, given that this time it’s expected.

However, if the first lockdown tells us anything, it’s that stocks likely to do well are those that offer value to people in lockdown. We were all using Zoom 20 times a day, favouring comfy clothes bought from boohoo and keeping fit with exercise bikes and treadmills bought on Amazon (did anyone keep that up?).

Without much else to do, especially with the weather getting colder, it’s likely that we’ll stick to the same habits this time around. “Alexa, add yeast and bread flour to my shopping list.”

So, without much further ado, let’s look at some lockdown stocks to watch.

Online clothing retailers

The last lockdown saw an influx of people buying nice tops to look smart in Zoom calls (which were, undoubtedly, paired with some comfy pyjama bottoms). We should probably have enough to tide us over, but with the onset of cold weather, it’s time to stock up on jumpers and wooly tights.

With the closure of non-essential shops, this could be a big win for online clothing retailers like ASOS and boohoo, making both of these lockdown stocks to watch.

Food retailers

Essential shops like supermarkets are allowed to remain open during the second lockdown. After all, where else will we stock up on all that loo roll? These retailers have majorly upped their delivery slots since coronavirus came about, too.
This could see a shift in shopping behaviour. If it’s got a delivery slot available, you can easily go with a supermarket you wouldn’t usually visit. If your regular have no slots available, what’s stopping you from jumping ship and trying out someone else? What might be a longer drive or walk when not in lockdown is nothing more than a new tab during lockdown.

This makes companies like Tesco, Ocado and Sainsburys some lockdown stocks to watch.

Food delivery companies

With many fast food outlets having to become delivery only from Thursday, it’s likely that companies like Just Eat and Deliveroo will see another increase in customers during lockdown 2. It’s hungry business sitting around doing nothing all day.

The good news is that companies are in a much better position this time around, so it’s unlikely we’ll see McDonalds or KFC closing their doors this time around. We’re all pretty versed in ordering ourselves a takeaway and having a glass or two of wine instead of heading out for a meal.

Pet shops and supply stores

The last lockdown saw lots of people adopting pets to keep them company during lockdown. With the weather keeping you inside more, there’s a chance this could happen again.

The week of March 16 saw 121% more dogs adopted from Battersea than the week before, and 33% more cats.

This means that people are spending more money on pet supplies like beds, food, toys and even cat prosecco. This has helped companies like Pets at Home. And don’t forget that Christmas is coming – so all of these new pet owners will be filling stockings for their new four-legged friends.

But remember: a pet is for life, not just for lockdown.

Compare investment services

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Your first 100 trades are free with Fineco, T&Cs apply.
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Capital at risk.
eToro Free Stocks
0% commission, no markup, no ticket fee, no management fee
N/A
Withdrawal fee & GDP to USD deposit conversion
Capital at risk. 0% commission but other fees may apply.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
No fees
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. Capital at risk.
Degiro Share Dealing
£1.75 + 0.022% (max £5.00)
£1.75 + 0.022% (max £5.00)
Portfolio transfer fees (in & out)
Degiro is widely seen as one of the best low-cost share brokers, for people who are looking to trade regularly. Capital at risk.
Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Open an ISA, Trading Account or SIPP you will get £100 of free trades to buy or sell any investment (new customers only).
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum deposit Maximum annual fee Price per trade Brand description
Interactive Investor stocks and shares ISA
Any lump sum or £25 a month
£119.88
£7.99
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
Moneyfarm stocks and shares ISA
£1500
0.75%
£0
Moneyfarm helps you meet your investment goals with fully-managed portfolios designed around you. Capital at risk.
Hargreaves Lansdown stocks and shares ISA
£100
0.45%
£11.95
Hargreaves Lansdown is the UK's biggest wealth manager. It's got everything you'll need, from beginners to experienced investors. Capital at risk.
Nutmeg stocks and shares ISA
£100
0.75%
£0
Nutmeg offers three types of portfolios. Choose the one that goes with your investment style. Capital at risk.
Saxo Markets stocks and shares ISA
No minimum deposit requirement
0.12%
£8.00
Saxo Markets offers a wide access to a range of stocks, ETFs and funds. Capital at risk.
AJ Bell stocks and shares ISA
£500
0.25%
£9.95
AJ Bell is a good all-rounder for people who to choose between shares, funds, ISAs and pensions. Capital at risk.
Fidelity stocks and shares ISA
£1000 or a regular savings plan from £50
0.35%
£10.00
Fidelity is another good all-rounder, offering a good package at a decent price. Not suited for trading shares. Capital at risk.
Legal & General stocks and shares ISA
Legal & General stocks and shares ISA
£100 or £20 a month
0.61%
N/A
Legal & General is a big financial services company which offers insurance, lifetime mortgage, pensions and stocks and shares ISAs. Capital at risk.
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Data indicated here is updated regularly
Name Product Minimum investment Choose from Annual fee Brand description
Interactive Investor Pension
Any lump sum or £25 a month
Over 3,000 funds
£10/month
interactive investor is a flat-fee platform, which makes it cost effective for larger portfolios. Capital at risk.
Moneyfarm Pension
£1,500 (initial investment)
7 funds
0.35%-0.75%
Moneyfarm has pensions that are matched against your risk appetite, goals and planned retirement date. Capital at risk.
AJ Bell Pension
£1,000
Over 2,000 funds
0.05-0.25%
AJ Bell has two different pension options, a self managed pension and one that is managed for you. Capital at risk.
PensionBee Pension
No minimum
7 funds
0.5% - 0.95%
Pension Bee is a newbie in the pension market. It helps consolidate your pension plans into one place. Capital at risk.
Hargreaves Lansdown Pension
£100 or £25 a month
2,500 funds
0-0.45%
Hargreaves Lansdown is the UK's biggest wealth manager. It's got three different retirement options. Capital at risk.
Saxo Markets Pension
Saxo Markets Pension
£10
Over 11,000 funds
No annual fee
Saxo Markets gives flexibility and control over your investment strategy. Capital at risk.
Penfold
Penfold
No minimum
4 portfolios
0.75-0.88%
Moneybox Pension
£1
3 funds
0.15% - 0.45% charged monthly
Manage your money with an easy-to-use Moneybox app. Capital at risk.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Warning: This article offers information about investing and the stock market, but is not personal investing advice. The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please get professional advice, for example from a financial adviser.

*Disclaimer: The offers compared on this page are chosen from a range of products Finder has access to track details from and is not representative of all the products available in the market. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

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